Finding 2022-003 Federal Agency: U.S. Department of Education Passthrough Entity: Missouri Department of Elementary and Secondary Education Assistance Listing Number and Federal Program: 84.425D Elementary and Secondary School Emergency Relief Federal Award Identification Number: S425D210021 Compliance Requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d) states ?(1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. Statement of Condition: During our audit we found the District is not keeping records to specifically track property and equipment acquired with Federal awards, nor is an inventory performed as required. Statement of Cause: The absence of internal controls over equipment and real property management led to the noncompliance with Federal regulations. Statement of Effect: Equipment purchases with Federal funds may be misallocated or disposed of improperly. Questioned Costs: No questioned costs were identified. Perspective Information: This appears to be a systemic problem as it was found no inventory has ever been kept for equipment purchased with Federal funds and therefore no physical inventory has been performed. Identification of Repeat Findings: Not a repeat finding. Recommendation: We recommend the District create an inventory listing of all equipment purchased with Federal funds. The District should create policies and procedures and ensure internal controls are in place to update the listing accurately and timely. Additionally, internal controls should be developed to safeguard the equipment and perform a physical inventory at least once every two years. Views of Responsible Officials: Dr. Ryan Bergeson will execute the following plan by February 3, 2023. Staff and Program Directors will be provided the Board Administrative Procedures DID-AP (1): Inventory Management and be required to follow the procedure as stated. All future federal equipment and supplies will be tagged with an identification number immediately after it is acquired by the Federal Program Director, Special Education Director, Administrator or Staff member receiving the grant so that it can be easily tracked. Along with the end of the year required inventory list from each teacher/director, they will need to provide a separate list of all current inventory purchased with federal funds. See corrective action plan.
Finding 2022-003 Federal Agency: U.S. Department of Education Passthrough Entity: Missouri Department of Elementary and Secondary Education Assistance Listing Number and Federal Program: 84.425D Elementary and Secondary School Emergency Relief Federal Award Identification Number: S425D210021 Compliance Requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d) states ?(1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. Statement of Condition: During our audit we found the District is not keeping records to specifically track property and equipment acquired with Federal awards, nor is an inventory performed as required. Statement of Cause: The absence of internal controls over equipment and real property management led to the noncompliance with Federal regulations. Statement of Effect: Equipment purchases with Federal funds may be misallocated or disposed of improperly. Questioned Costs: No questioned costs were identified. Perspective Information: This appears to be a systemic problem as it was found no inventory has ever been kept for equipment purchased with Federal funds and therefore no physical inventory has been performed. Identification of Repeat Findings: Not a repeat finding. Recommendation: We recommend the District create an inventory listing of all equipment purchased with Federal funds. The District should create policies and procedures and ensure internal controls are in place to update the listing accurately and timely. Additionally, internal controls should be developed to safeguard the equipment and perform a physical inventory at least once every two years. Views of Responsible Officials: Dr. Ryan Bergeson will execute the following plan by February 3, 2023. Staff and Program Directors will be provided the Board Administrative Procedures DID-AP (1): Inventory Management and be required to follow the procedure as stated. All future federal equipment and supplies will be tagged with an identification number immediately after it is acquired by the Federal Program Director, Special Education Director, Administrator or Staff member receiving the grant so that it can be easily tracked. Along with the end of the year required inventory list from each teacher/director, they will need to provide a separate list of all current inventory purchased with federal funds. See corrective action plan.
Finding 2022-003 Federal Agency: U.S. Department of Education Passthrough Entity: Missouri Department of Elementary and Secondary Education Assistance Listing Number and Federal Program: 84.425D Elementary and Secondary School Emergency Relief Federal Award Identification Number: S425D210021 Compliance Requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d) states ?(1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. Statement of Condition: During our audit we found the District is not keeping records to specifically track property and equipment acquired with Federal awards, nor is an inventory performed as required. Statement of Cause: The absence of internal controls over equipment and real property management led to the noncompliance with Federal regulations. Statement of Effect: Equipment purchases with Federal funds may be misallocated or disposed of improperly. Questioned Costs: No questioned costs were identified. Perspective Information: This appears to be a systemic problem as it was found no inventory has ever been kept for equipment purchased with Federal funds and therefore no physical inventory has been performed. Identification of Repeat Findings: Not a repeat finding. Recommendation: We recommend the District create an inventory listing of all equipment purchased with Federal funds. The District should create policies and procedures and ensure internal controls are in place to update the listing accurately and timely. Additionally, internal controls should be developed to safeguard the equipment and perform a physical inventory at least once every two years. Views of Responsible Officials: Dr. Ryan Bergeson will execute the following plan by February 3, 2023. Staff and Program Directors will be provided the Board Administrative Procedures DID-AP (1): Inventory Management and be required to follow the procedure as stated. All future federal equipment and supplies will be tagged with an identification number immediately after it is acquired by the Federal Program Director, Special Education Director, Administrator or Staff member receiving the grant so that it can be easily tracked. Along with the end of the year required inventory list from each teacher/director, they will need to provide a separate list of all current inventory purchased with federal funds. See corrective action plan.
Equipment Management Finding Number: 2022-003 Assistance Listing Number and Title: AL # 84.425C, Education Stabilization Fund- Governor's Emergency Education Relief Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Education Compliance Requirement: Section F: Equipment and Real Property Management Pass Through Entity: Ohio Department of Education Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR ? 3474.1 gives regulatory effect to the Department of Education for 2 CFR ? 200.313(d)(1) which provides that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. The Center purchased a heat pump and three furnaces in the amount of $25,000 using their Governor's Emergency Education Relief (AL#84.425C) federal funding; however, they failed to add these assets to their capital asset listing due to a failure in adequately designed controls. The failure to properly record assets can lead to difficulties maintaining accountability for the related assets. The Treasurer and Superintendent should monitor transactions and ensure that all capital additions are properly documented in the capital assert records.
Finding 2022-006. Equipment Management. (ALN 84.010 Title I grants to local educational agencies; ALN 84.424 Student support and academic enrichment grants, and ALN 84.425U ARP ESSER III) CRITERIA: 2 CFR 200.313(d)(1) requires for federal grants that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, the acquisition date, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Since the State of Mississippi has more stringent criteria for tracking equipment inventory, the district must follow the following guidelines for equipment purchased with federal funds. Code Section 37-17-6(18) requires that the State Board of Education, acting through the Commission on School Accreditation, shall require each school district to comply with standards established by the State Department of Audit for the verification of fixed assets and the auditing of fixed assets records as a minimum requirement for accreditation. The State Department of Audit has issued an asset management manual to be used as a standard for verification of fixed assets. The school board has policies and procedures outlining the control and verification of fixed assets within the school district. As part of the asset management manual and local board policy, the district is charged with tracking assets meeting certain thresholds and performing physical verification of those assets at least annually. CONDITION: During our testing, we noted various pieces of equipment purchased with grant dollars totaling $92,555.68 that had not been added to the district?s subsidiary equipment records at the time of audit fieldwork. None of the purchased equipment met the threshold for depreciation; however, all the equipment met the threshold and criteria for tagging and inclusion in the subsidiary equipment records. These purchases were spread over three different federal grants as follows: ALN 84.010 Title I grants to local education agencies - $14,491.39 ALN 84.424 Student support and academic enrichments grants - $40,872.29 ALN 84.425U ARP ESSER III - $37,192.00 The school district stated that even though the equipment had not been added to the subsidiary records at the time of audit fieldwork, all equipment had been properly tagged. A physical inventory performed at the end of the 2021-2022 year would not have included all assets purchased during the 2021-2022 year because of the assets that had not been added to the inventory records at the time of purchase and tagging, therefore a year end inventory would have been incomplete. Our testing of the physical existence of selected fixed asset items revealed three (3) instances where assets appropriately included in the inventory records were not found at the time of testing. The three (3) assets not located were two (2) chromebooks and one (1) ipad with an original combined purchase price of $1,249.43. The assets were purchased from the following federal grant: ALN 84.425U ARP ESSER III - $1,249.43 CAUSE: The school district personnel failed to follow established policies for the recording of purchased equipment meeting the criteria for inclusion in equipment subsidiary records to the subsidiary records. EFFECT: The effect is a breakdown in controls surrounding the safeguarding of equipment purchased with federal dollars. Equipment purchased for use in the federal program could be used for purposes not related to the program or converted to personal use. QUESTIONED COSTS: None RECOMMENDATION: The district should follow established policies and procedures outlining the safeguarding of equipment purchased with federal grant dollars. VIEWS OF RESPONSIBLE OFFICIALS: See the school district?s response in the auditee?s corrective action plan in this report.
Finding 2022-006. Equipment Management. (ALN 84.010 Title I grants to local educational agencies; ALN 84.424 Student support and academic enrichment grants, and ALN 84.425U ARP ESSER III) CRITERIA: 2 CFR 200.313(d)(1) requires for federal grants that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, the acquisition date, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Since the State of Mississippi has more stringent criteria for tracking equipment inventory, the district must follow the following guidelines for equipment purchased with federal funds. Code Section 37-17-6(18) requires that the State Board of Education, acting through the Commission on School Accreditation, shall require each school district to comply with standards established by the State Department of Audit for the verification of fixed assets and the auditing of fixed assets records as a minimum requirement for accreditation. The State Department of Audit has issued an asset management manual to be used as a standard for verification of fixed assets. The school board has policies and procedures outlining the control and verification of fixed assets within the school district. As part of the asset management manual and local board policy, the district is charged with tracking assets meeting certain thresholds and performing physical verification of those assets at least annually. CONDITION: During our testing, we noted various pieces of equipment purchased with grant dollars totaling $92,555.68 that had not been added to the district?s subsidiary equipment records at the time of audit fieldwork. None of the purchased equipment met the threshold for depreciation; however, all the equipment met the threshold and criteria for tagging and inclusion in the subsidiary equipment records. These purchases were spread over three different federal grants as follows: ALN 84.010 Title I grants to local education agencies - $14,491.39 ALN 84.424 Student support and academic enrichments grants - $40,872.29 ALN 84.425U ARP ESSER III - $37,192.00 The school district stated that even though the equipment had not been added to the subsidiary records at the time of audit fieldwork, all equipment had been properly tagged. A physical inventory performed at the end of the 2021-2022 year would not have included all assets purchased during the 2021-2022 year because of the assets that had not been added to the inventory records at the time of purchase and tagging, therefore a year end inventory would have been incomplete. Our testing of the physical existence of selected fixed asset items revealed three (3) instances where assets appropriately included in the inventory records were not found at the time of testing. The three (3) assets not located were two (2) chromebooks and one (1) ipad with an original combined purchase price of $1,249.43. The assets were purchased from the following federal grant: ALN 84.425U ARP ESSER III - $1,249.43 CAUSE: The school district personnel failed to follow established policies for the recording of purchased equipment meeting the criteria for inclusion in equipment subsidiary records to the subsidiary records. EFFECT: The effect is a breakdown in controls surrounding the safeguarding of equipment purchased with federal dollars. Equipment purchased for use in the federal program could be used for purposes not related to the program or converted to personal use. QUESTIONED COSTS: None RECOMMENDATION: The district should follow established policies and procedures outlining the safeguarding of equipment purchased with federal grant dollars. VIEWS OF RESPONSIBLE OFFICIALS: See the school district?s response in the auditee?s corrective action plan in this report.
Finding 2022-006. Equipment Management. (ALN 84.010 Title I grants to local educational agencies; ALN 84.424 Student support and academic enrichment grants, and ALN 84.425U ARP ESSER III) CRITERIA: 2 CFR 200.313(d)(1) requires for federal grants that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, the acquisition date, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Since the State of Mississippi has more stringent criteria for tracking equipment inventory, the district must follow the following guidelines for equipment purchased with federal funds. Code Section 37-17-6(18) requires that the State Board of Education, acting through the Commission on School Accreditation, shall require each school district to comply with standards established by the State Department of Audit for the verification of fixed assets and the auditing of fixed assets records as a minimum requirement for accreditation. The State Department of Audit has issued an asset management manual to be used as a standard for verification of fixed assets. The school board has policies and procedures outlining the control and verification of fixed assets within the school district. As part of the asset management manual and local board policy, the district is charged with tracking assets meeting certain thresholds and performing physical verification of those assets at least annually. CONDITION: During our testing, we noted various pieces of equipment purchased with grant dollars totaling $92,555.68 that had not been added to the district?s subsidiary equipment records at the time of audit fieldwork. None of the purchased equipment met the threshold for depreciation; however, all the equipment met the threshold and criteria for tagging and inclusion in the subsidiary equipment records. These purchases were spread over three different federal grants as follows: ALN 84.010 Title I grants to local education agencies - $14,491.39 ALN 84.424 Student support and academic enrichments grants - $40,872.29 ALN 84.425U ARP ESSER III - $37,192.00 The school district stated that even though the equipment had not been added to the subsidiary records at the time of audit fieldwork, all equipment had been properly tagged. A physical inventory performed at the end of the 2021-2022 year would not have included all assets purchased during the 2021-2022 year because of the assets that had not been added to the inventory records at the time of purchase and tagging, therefore a year end inventory would have been incomplete. Our testing of the physical existence of selected fixed asset items revealed three (3) instances where assets appropriately included in the inventory records were not found at the time of testing. The three (3) assets not located were two (2) chromebooks and one (1) ipad with an original combined purchase price of $1,249.43. The assets were purchased from the following federal grant: ALN 84.425U ARP ESSER III - $1,249.43 CAUSE: The school district personnel failed to follow established policies for the recording of purchased equipment meeting the criteria for inclusion in equipment subsidiary records to the subsidiary records. EFFECT: The effect is a breakdown in controls surrounding the safeguarding of equipment purchased with federal dollars. Equipment purchased for use in the federal program could be used for purposes not related to the program or converted to personal use. QUESTIONED COSTS: None RECOMMENDATION: The district should follow established policies and procedures outlining the safeguarding of equipment purchased with federal grant dollars. VIEWS OF RESPONSIBLE OFFICIALS: See the school district?s response in the auditee?s corrective action plan in this report.
FA 2022-003 Improve Controls over Equipment Compliance Requirement: Equipment and Real Property Management Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: Georgia Department of Education AL Numbers and Titles: COVID-19 ? 84.425D ? Elementary and Secondary School Emergency Relief Fund COVID-19 ? 84.425U ? American Rescue Plan Elementary and Secondary School Emergency Relief Fund Federal Award Numbers: S425D200012 (Year: 2020), S425D210012 (Year: 2021) S425U210012 (Year: 2021) Questioned Costs: None Identified Description: The policies and procedures of the School District were insufficient to provide adequate internal controls over equipment and real property management as it relates to the Elementary and Secondary School Emergency Relief Fund program. Background: On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The CARES Act was designed to mitigate the economic effects of the COVID-19 pandemic in a variety of ways, including providing additional funding for local educational agencies (LEAs) navigating the impact of the COVID-19 outbreak. Provisions included in Title VIII of the CARES Act created the Education Stabilization Fund to provide financial resources to educational entities to prevent, prepare for, and respond to coronavirus. The CARES Act allocated $30.75 billion, the Coronavirus Response and Relief Supplemental Appropriations Act allocated an additional $81.9 billion, and the American Rescue Plan Act added $165.1 billion in funding to the Education Stabilization Fund. Multiple Education Stabilization Fund subprograms were created and allotted funding through the various COVID-19-related legislation. Of these programs, the Elementary and Secondary School Emergency Relief (ESSER) Fund was created to address the impact that COVID-19 has had, and continues to have, on elementary and secondary schools across the nation. ESSER funding was granted to the Georgia Department of Education (GaDOE) by the U.S. Department of Education (ED). GaDOE is responsible for distributing funds to LEAs and overseeing the expenditure of funds by LEAs. ESSER funds totaling $199,433,680.30 were expended and reported on the DeKalb County Board of Education?s Schedule of Expenditures of Federal Awards (SEFA) for fiscal year 2022. Criteria: As a recipient of federal awards, the School District is required to establish and maintain effective internal control over federal awards that provides reasonable assurance of managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards pursuant to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 200.303 ? Internal Controls. Provisions included in the Uniform Guidance, Section 200.313(d)(1) state, ?Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property.? In addition, the Uniform Guidance, Section 200.313(d)(2) states, ?A physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years.? Condition: The following deficiencies were noted when reviewing the ESSER program equipment listing and related invoice documentation: ? Equipment items totaling $163,730.00 were included on the financial statement capital asset listing but were excluded from the program equipment listing; therefore, property records did not include the following required components for the omitted equipment items: (1) A description of the property, (2) a serial number or other identification number, (3) the source of funding for the property (including the FAIN), (4) who holds title, (5) the acquisition date, (6) cost of the property, (7) percentage of Federal participation in the project costs for the Federal award under which the property was acquired, (8) the location, and (9) use and condition of the property. ? Building improvements of $3,573,167.42 were excluded from the program equipment listing. ? Because these items were not included on the program equipment listing, a complete physical inventory was not performed and reconciled back to the property records. Cause: In discussing this deficiency with the School District, they stated that those items included on the capital asset listing and excluded from the program equipment listing were discovered after preparation and submission of the program equipment listing but prior to the submission of the financial statement capital asset listing. In addition, the building improvements are capitalized at a higher threshold for financial statement purposes and were overlooked by the School District when preparing the program equipment listing. Effect: The School District is not in compliance with the Uniform Guidance or GaDOE guidance related to the ESSER program. Failure to maintain a complete and accurate equipment listing and reconcile results of the physical inventory performed to the property records exposes the School District to unnecessary risk of error and misuse of equipment and/or Federal funds. Recommendation: The School District should develop and maintain an equipment listing that reflects all required information, including a description, an identifying number, the source of funding, the title holder, the acquisition date, the cost, the percentage of federal participation in the project costs, the location, the use and condition, and any ultimate disposal data for each piece of equipment. In addition, management should implement controls to ensure that a complete physical inventory of equipment is performed, and the results are reconciled back to the equipment listing at least once every two years. Further, management should develop and implement a monitoring process to ensure that control procedures are being followed. Views of Responsible Officials: We concur with this finding.
Criteria or specific requirement (including statutory, regulatory, or other citation) "2 CFR 200.313, Equipment, requires the following with respect to equipment purchased with Federal Funds: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated." Condition The District does not currently maintain a detailed accounting/list of its capital assets, including Federal assets. The District does not have a recent replacement cost valuation for insurance purposes. Questioned Costs N/A Context The District has not updated or prepared a detailed listing of capital assets in recent years, but rather has relied upon the auditor to provided non-auditing services in this area. The District has not obtained an insurance valuation of its property in recent years. Effect The District is out of compliance with Federal property regulations as a result of this condition. Cause The cause of the condition is because the District has not contracted with any third parties to accomplish the task, nor has it allocated internal resources to the condition. Recommendation We recommend that the District contract with a third party asset vendor or allocate internal business office resources to performing a detailed inventory and accounting of capital assets. We also recommend the District obtain an appraisal for insurance purposes to ensure that the District's property is appropriately insured in the event of loss. Management's response Management agrees with this finding. Management is in the process of determining the most efficient way to handle this process and is evaluating the cost-benefit of implementing various processes and procedures.
FINDING 2022-003 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Number: 84.425 Federal Award Numbers or Years (or Other Identifying Numbers): S425D200013, S425D2100013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. The School Corporation hired a third-party to complete capital asset records every two years. The third-party updated the capital assets records through the school year ended June 30, 2021; however, neither the third-party, nor the School Corporation maintained the records beyond that year. During fiscal year 2021-2022, the School Corporation purchased $1,081,254 of equipment for the boiler/chiller project with Elementary and Secondary School Emergency Relief (ESSER) III funds. The boiler/chiller project was not added to the property record which would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property . The lack of internal controls and noncompliance were isolated to the property records for 2021-2022. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d)(1) states: "Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property." Cause Management had not developed a system of internal controls that would have ensured compliance with the Equipment and Real Property Management compliance requirement. Effect The failure to establish an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement could have resulted in the loss of federal funds to the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish internal controls to ensure compliance and comply with the grant agreement and the Equipment and Real Property Management compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2022-003 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Number: 84.425 Federal Award Numbers or Years (or Other Identifying Numbers): S425D200013, S425D2100013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. The School Corporation hired a third-party to complete capital asset records every two years. The third-party updated the capital assets records through the school year ended June 30, 2021; however, neither the third-party, nor the School Corporation maintained the records beyond that year. During fiscal year 2021-2022, the School Corporation purchased $1,081,254 of equipment for the boiler/chiller project with Elementary and Secondary School Emergency Relief (ESSER) III funds. The boiler/chiller project was not added to the property record which would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property . The lack of internal controls and noncompliance were isolated to the property records for 2021-2022. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d)(1) states: "Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property." Cause Management had not developed a system of internal controls that would have ensured compliance with the Equipment and Real Property Management compliance requirement. Effect The failure to establish an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement could have resulted in the loss of federal funds to the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish internal controls to ensure compliance and comply with the grant agreement and the Equipment and Real Property Management compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2022-003 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Number: 84.425 Federal Award Numbers or Years (or Other Identifying Numbers): S425D200013, S425D2100013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. The School Corporation hired a third-party to complete capital asset records every two years. The third-party updated the capital assets records through the school year ended June 30, 2021; however, neither the third-party, nor the School Corporation maintained the records beyond that year. During fiscal year 2021-2022, the School Corporation purchased $1,081,254 of equipment for the boiler/chiller project with Elementary and Secondary School Emergency Relief (ESSER) III funds. The boiler/chiller project was not added to the property record which would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property . The lack of internal controls and noncompliance were isolated to the property records for 2021-2022. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d)(1) states: "Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property." Cause Management had not developed a system of internal controls that would have ensured compliance with the Equipment and Real Property Management compliance requirement. Effect The failure to establish an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement could have resulted in the loss of federal funds to the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish internal controls to ensure compliance and comply with the grant agreement and the Equipment and Real Property Management compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2022-003 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Number: 84.425 Federal Award Numbers or Years (or Other Identifying Numbers): S425D200013, S425D2100013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. The School Corporation hired a third-party to complete capital asset records every two years. The third-party updated the capital assets records through the school year ended June 30, 2021; however, neither the third-party, nor the School Corporation maintained the records beyond that year. During fiscal year 2021-2022, the School Corporation purchased $1,081,254 of equipment for the boiler/chiller project with Elementary and Secondary School Emergency Relief (ESSER) III funds. The boiler/chiller project was not added to the property record which would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property . The lack of internal controls and noncompliance were isolated to the property records for 2021-2022. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d)(1) states: "Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property." Cause Management had not developed a system of internal controls that would have ensured compliance with the Equipment and Real Property Management compliance requirement. Effect The failure to establish an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement could have resulted in the loss of federal funds to the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish internal controls to ensure compliance and comply with the grant agreement and the Equipment and Real Property Management compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
Education Stabilization Fund COVID-19 ? Elementary and Secondary School Emergency Relief Fund; ALN 84.425D; Project #5891-21-2955; Grant Period ? Fiscal Year Ended June 30, 2022 COVID-19 ? Governor?s Emergency Education Relief Fund; ALN 84.425C; Project #5896-21-2955; Grant Period ? Fiscal Year Ended June 30, 2022 COVID-19 ? American Rescue Plan ? Elementary and Secondary School Emergency Relief (ARP ESSER); ALN 84.425U; Project #?s 5880-21-2955, 5884-21-2955; Grant Period ? Fiscal Year Ended June 30, 2022 Significant Deficiency Compliance Requirement: Equipment/Real Property Management Criteria: According to 2 CFR section 200.313(d)(1), detailed property records must be maintained for equipment acquired under a federal grant award. Records should include a description of the property, a serial number or identification number, the source of funding (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and ultimate disposition data. Condition: During our audit, we noted the District?s fixed asset records were incomplete relating to five assets acquired with federal grant funding that did not appear in the fixed asset records. Cause: Several equipment items purchased with federal funds were not appropriately captured as fixed asset additions and thus, were not included within the District?s fixed asset records. Effect: The District?s fixed asset records are incomplete and thus, fixed assets purchased with federal funds may not be properly safeguarded and the District may not be in compliance with the aforementioned federal regulations. Questioned Costs: None. Recommendation: We recommend the District update their fixed asset records to include required information for assets purchased with federal awards and that a system of communication and a review process be implemented to ensure completeness and accuracy of fixed asset records. District?s Response: The District?s response is included in their corrective plan.
Education Stabilization Fund COVID-19 ? Elementary and Secondary School Emergency Relief Fund; ALN 84.425D; Project #5891-21-2955; Grant Period ? Fiscal Year Ended June 30, 2022 COVID-19 ? Governor?s Emergency Education Relief Fund; ALN 84.425C; Project #5896-21-2955; Grant Period ? Fiscal Year Ended June 30, 2022 COVID-19 ? American Rescue Plan ? Elementary and Secondary School Emergency Relief (ARP ESSER); ALN 84.425U; Project #?s 5880-21-2955, 5884-21-2955; Grant Period ? Fiscal Year Ended June 30, 2022 Significant Deficiency Compliance Requirement: Equipment/Real Property Management Criteria: According to 2 CFR section 200.313(d)(1), detailed property records must be maintained for equipment acquired under a federal grant award. Records should include a description of the property, a serial number or identification number, the source of funding (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and ultimate disposition data. Condition: During our audit, we noted the District?s fixed asset records were incomplete relating to five assets acquired with federal grant funding that did not appear in the fixed asset records. Cause: Several equipment items purchased with federal funds were not appropriately captured as fixed asset additions and thus, were not included within the District?s fixed asset records. Effect: The District?s fixed asset records are incomplete and thus, fixed assets purchased with federal funds may not be properly safeguarded and the District may not be in compliance with the aforementioned federal regulations. Questioned Costs: None. Recommendation: We recommend the District update their fixed asset records to include required information for assets purchased with federal awards and that a system of communication and a review process be implemented to ensure completeness and accuracy of fixed asset records. District?s Response: The District?s response is included in their corrective plan.
Education Stabilization Fund COVID-19 ? Elementary and Secondary School Emergency Relief Fund; ALN 84.425D; Project #5891-21-2955; Grant Period ? Fiscal Year Ended June 30, 2022 COVID-19 ? Governor?s Emergency Education Relief Fund; ALN 84.425C; Project #5896-21-2955; Grant Period ? Fiscal Year Ended June 30, 2022 COVID-19 ? American Rescue Plan ? Elementary and Secondary School Emergency Relief (ARP ESSER); ALN 84.425U; Project #?s 5880-21-2955, 5884-21-2955; Grant Period ? Fiscal Year Ended June 30, 2022 Significant Deficiency Compliance Requirement: Equipment/Real Property Management Criteria: According to 2 CFR section 200.313(d)(1), detailed property records must be maintained for equipment acquired under a federal grant award. Records should include a description of the property, a serial number or identification number, the source of funding (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and ultimate disposition data. Condition: During our audit, we noted the District?s fixed asset records were incomplete relating to five assets acquired with federal grant funding that did not appear in the fixed asset records. Cause: Several equipment items purchased with federal funds were not appropriately captured as fixed asset additions and thus, were not included within the District?s fixed asset records. Effect: The District?s fixed asset records are incomplete and thus, fixed assets purchased with federal funds may not be properly safeguarded and the District may not be in compliance with the aforementioned federal regulations. Questioned Costs: None. Recommendation: We recommend the District update their fixed asset records to include required information for assets purchased with federal awards and that a system of communication and a review process be implemented to ensure completeness and accuracy of fixed asset records. District?s Response: The District?s response is included in their corrective plan.
Education Stabilization Fund COVID-19 ? Elementary and Secondary School Emergency Relief Fund; ALN 84.425D; Project #5891-21-2955; Grant Period ? Fiscal Year Ended June 30, 2022 COVID-19 ? Governor?s Emergency Education Relief Fund; ALN 84.425C; Project #5896-21-2955; Grant Period ? Fiscal Year Ended June 30, 2022 COVID-19 ? American Rescue Plan ? Elementary and Secondary School Emergency Relief (ARP ESSER); ALN 84.425U; Project #?s 5880-21-2955, 5884-21-2955; Grant Period ? Fiscal Year Ended June 30, 2022 Significant Deficiency Compliance Requirement: Equipment/Real Property Management Criteria: According to 2 CFR section 200.313(d)(1), detailed property records must be maintained for equipment acquired under a federal grant award. Records should include a description of the property, a serial number or identification number, the source of funding (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and ultimate disposition data. Condition: During our audit, we noted the District?s fixed asset records were incomplete relating to five assets acquired with federal grant funding that did not appear in the fixed asset records. Cause: Several equipment items purchased with federal funds were not appropriately captured as fixed asset additions and thus, were not included within the District?s fixed asset records. Effect: The District?s fixed asset records are incomplete and thus, fixed assets purchased with federal funds may not be properly safeguarded and the District may not be in compliance with the aforementioned federal regulations. Questioned Costs: None. Recommendation: We recommend the District update their fixed asset records to include required information for assets purchased with federal awards and that a system of communication and a review process be implemented to ensure completeness and accuracy of fixed asset records. District?s Response: The District?s response is included in their corrective plan.
SCHEDULE II REGIONAL SCHOOL UNIT #67 Schedule of Findings and Questioned Costs For the Year Ended June 30, 2022 A. SUMMARY OF AUDITOR?S RESULTS 1. The auditor?s report expresses unmodified opinions on the financial statements of Regional School Unit #67. 2. No material weaknesses or significant deficiencies relating to the audit of the financial statements is reported in the Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. 3. One instance of noncompliance material to the financial statements of Regional School Unit #67 was discovered during the audit. 4. One material weakness relating to the audit of the major federal award programs are reported in the Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance. 5. The auditor?s report on compliance for the major federal award programs for Regional School Unit #67 expresses an unmodified opinion. 6. Audit findings relative to the major federal award programs for Regional School Unit #67 are reported in Part C of this schedule. 7. The programs tested as major programs include: ALN #84.027 - Special Education Grants to States ALN #84.425D - COVID-19 Education Stabilization Fund Under the Coronavirus Aid, Relief and Economic Security Act ? ESSERF ALN #84.425D - COVID-19 Education Stabilization Fund Under the Coronavirus Aid, Relief and Economic Security Act ? ESSERF II ALN #84.425U - COVID-19 Education Stabilization Fund Under the Coronavirus Aid, Relief and Economic Security Act ? ARP 8. The threshold for distinguishing Types A and B programs was $750,000. 9. Regional School Unit #67 was not determined to be a low-risk auditee. B. FINDINGS ? FINANCIAL STATEMENT AUDIT NONE C. FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT 2022-001 Equipment and Real Property Management Criteria: Per 2 CFR section 200.313(c) through (e), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: The School Unit did not maintain property records or complete a physical inventory as described above. Cause: The School Unit was not aware of this compliance requirement for this new grant. 85 Effect: The School Unit is not in compliance with equipment and real property management requirements. Questioned Costs: None. Recommendation: We recommend the School Unit create property records for the federal grant. We also recommend management performs inventory at least once every two years. Response: Management concurs with the recommendation. During the time of audit fieldwork, the School Unit created a binder with property records for all equipment purchased with the grant money.
FINDING 2022-016 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Number: 84.425D Federal Award Number and Year (or Other Identifying Numbers): S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context The School Corporation purchased an All Purpose Laser Machine, totaling $14,523, with Education Stabilization Funds. This asset was not added to a detailed listing of capital assets that would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, and the use and condition of the property. In addition, a physical inventory had not been taken in the past two years and assets were not properly safeguarded and maintained. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated . . ." Cause Management had not designed nor implemented a system of internal controls that would have ensured compliance with the grant agreement and the Equipment and Real Property Management compliance requirement. Effect The failure to establish an effective system of internal controls enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement could result in the loss of future federal funds to the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish internal controls to ensure compliance and comply with the grant agreement and the Equipment and Real Property Management compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2022-006 Information on the federal program: Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Numbers: 84.425D, 84.425U Federal Award Numbers or Years (or Other Identifying Numbers): S425D200013, S425D2100013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Significant Deficiency Criteria: 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d)(1) states: "Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property." Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. Cause: Management had not developed a system of internal control that would have ensured compliance with the grant agreement and the Equipment and Real Property Management compliance requirement. Effect: The failure to establish an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement could result in the loss of future federal funds to the School Corporation. Questioned Costs: There were no questioned costs identified. Context: During the audit period, the School Corporation expended $1,685,526 in Economic Stabilization Funds (ESSER) for a building project. Although this project was included in the School Corporation?s capital asset records, it was recorded at the estimated total project cost of $6,256,000. In addition, the School Corporation did not designate the amount of the project that was paid with federal grant funds. The lack of internal controls was limited to the building project. Identification as a repeat finding: No. Recommendation: We recommended that the School Corporation's management establish a system of internal control to ensure compliance and comply with the grant agreement and the Equipment and Real Property Management compliance requirement. Views of Responsible Officials and Planned Corrective Actions: Management does not agree with the finding and has prepared a corrective action plan.
FINDING 2022-006 Information on the federal program: Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Numbers: 84.425D, 84.425U Federal Award Numbers or Years (or Other Identifying Numbers): S425D200013, S425D2100013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Significant Deficiency Criteria: 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d)(1) states: "Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property." Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. Cause: Management had not developed a system of internal control that would have ensured compliance with the grant agreement and the Equipment and Real Property Management compliance requirement. Effect: The failure to establish an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement could result in the loss of future federal funds to the School Corporation. Questioned Costs: There were no questioned costs identified. Context: During the audit period, the School Corporation expended $1,685,526 in Economic Stabilization Funds (ESSER) for a building project. Although this project was included in the School Corporation?s capital asset records, it was recorded at the estimated total project cost of $6,256,000. In addition, the School Corporation did not designate the amount of the project that was paid with federal grant funds. The lack of internal controls was limited to the building project. Identification as a repeat finding: No. Recommendation: We recommended that the School Corporation's management establish a system of internal control to ensure compliance and comply with the grant agreement and the Equipment and Real Property Management compliance requirement. Views of Responsible Officials and Planned Corrective Actions: Management does not agree with the finding and has prepared a corrective action plan.
FA 2022-002 Improve Controls over Equipment Compliance Requirement: Equipment and Real Property Management Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: Georgia Department of Education AL Numbers and Titles: COVID-19 ? 84.425D ? Elementary and Secondary School Emergency Relief Fund COVID-19 ? 84.425U ? American Rescue Plan Elementary and Secondary School Emergency Relief Fund COVID-19 ? 84.425W ? American Rescue Plan Elementary and Secondary School Emergency Relief Fund ? Homeless Children and Youth Federal Award Numbers: S425D210012 (Year: 2021), S425U210012 (Year: 2021), S425W210011 (Year: 2021) Questioned Costs: None Identified Description: The policies and procedures of the School District were insufficient to provide adequate internal controls over equipment and real property management as it relates to the Elementary and Secondary School Emergency Relief Fund program. Background: On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The CARES Act was designed to mitigate the economic effects of the COVID-19 pandemic in a variety of ways, including providing additional funding for local educational agencies (LEAs) navigating the impact of the COVID-19 outbreak. Provisions included in Title VIII of the CARES Act created the Education Stabilization Fund to provide financial resources to educational entities to prevent, prepare for, and respond to coronavirus. The CARES Act allocated $30.75 billion, the Coronavirus Response and Relief Supplemental Appropriations Act allocated an additional $81.9 billion, and the American Rescue Plan Act added $165.1 billion in funding to the Education Stabilization Fund. Multiple Education Stabilization Fund subprograms were created and allotted funding through the various COVID-19-related legislation. Of these programs, the Elementary and Secondary School Emergency Relief (ESSER) Fund was created to address the impact that COVID-19 has had, and continues to have, on elementary and secondary schools across the nation. ESSER funding was granted to the Georgia Department of Education (GaDOE) by the U.S. Department of Education (ED). GaDOE is responsible for distributing funds to LEAs and overseeing the expenditure of funds by LEAs. ESSER funds totaling $12,214,096 were expended and reported on the Tattnall County Board of Education?s Schedule of Expenditures of Federal Awards (SEFA) for fiscal year 2022. Criteria: As a recipient of federal awards, the School District is required to establish and maintain effective internal control over federal awards that provides reasonable assurance of managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards pursuant to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 200.303 ? Internal Controls. Provisions included in the Uniform Guidance, Section 200.313(d)(1) state, ?Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property.? In addition, the Uniform Guidance, Section 200.313(d)(2) states, ?A physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years.? Condition: The following deficiencies were noted when reviewing the ESSER program equipment listing and physically locating five equipment items: ? Property records did not include the following required components for all items tested: (1) A description of the property, (2) a serial number or other identification number, (3) the source of funding for the property (including the FAIN), (4) who holds title, (5) percentage of Federal participation in the project costs for the Federal award under which the property was acquired, (6) the location, and (7) use and condition of the property. ? Two pieces of equipment with costs totaling $19,387 could not be physically located based on information included in the property records, and these items reflected serial numbers that did not agree to accounting records. ? The appropriate safeguarding and maintenance of three pieces of equipment with costs totaling $105,674 could not be determined based on the information included within the property records. ? While a physical inventory was performed, the results were not effectively reconciled to the equipment listing. Cause: In discussing these deficiencies with management, they stated that there are multiple inventory lists maintained by various personnel; however, there was no consistency among the listings. Effect: The School District is not in compliance with the Uniform Guidance or GaDOE guidance related to the ESSER program. Failure to maintain a complete and accurate equipment listing and reconcile results of the physical inventory performed to the property records exposes the School District to unnecessary risk of error and misuse of equipment and/or federal funds. Recommendation: The School District should develop and maintain an equipment listing that reflects all required information, including a description, an identifying number, the source of funding, the title holder, the acquisition date, the cost, the percentage of federal participation in the project costs, the location, the use and condition, and any ultimate disposal data for each piece of equipment. In addition, management should implement controls to ensure that a complete physical inventory of equipment is performed, and the results are reconciled back to the equipment listing at least once every two years. Further, management should develop and implement a monitoring process to ensure that control procedures are being followed. Views of Responsible Officials: We concur with this finding. FA 2022-002 Improve Controls over Equipment Compliance Requirement: Equipment and Real Property Management Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: Georgia Department of Education AL Numbers and Titles: COVID-19 ? 84.425D ? Elementary and Secondary School Emergency Relief Fund COVID-19 ? 84.425U ? American Rescue Plan Elementary and Secondary School Emergency Relief Fund COVID-19 ? 84.425W ? American Rescue Plan Elementary and Secondary School Emergency Relief Fund ? Homeless Children and Youth Federal Award Numbers: S425D210012 (Year: 2021), S425U210012 (Year: 2021), S425W210011 (Year: 2021) Questioned Costs: None Identified Description: The policies and procedures of the School District were insufficient to provide adequate internal controls over equipment and real property management as it relates to the Elementary and Secondary School Emergency Relief Fund program. Background: On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The CARES Act was designed to mitigate the economic effects of the COVID-19 pandemic in a variety of ways, including providing additional funding for local educational agencies (LEAs) navigating the impact of the COVID-19 outbreak. Provisions included in Title VIII of the CARES Act created the Education Stabilization Fund to provide financial resources to educational entities to prevent, prepare for, and respond to coronavirus. The CARES Act allocated $30.75 billion, the Coronavirus Response and Relief Supplemental Appropriations Act allocated an additional $81.9 billion, and the American Rescue Plan Act added $165.1 billion in funding to the Education Stabilization Fund. Multiple Education Stabilization Fund subprograms were created and allotted funding through the various COVID-19-related legislation. Of these programs, the Elementary and Secondary School Emergency Relief (ESSER) Fund was created to address the impact that COVID-19 has had, and continues to have, on elementary and secondary schools across the nation. ESSER funding was granted to the Georgia Department of Education (GaDOE) by the U.S. Department of Education (ED). GaDOE is responsible for distributing funds to LEAs and overseeing the expenditure of funds by LEAs. ESSER funds totaling $12,214,096 were expended and reported on the Tattnall County Board of Education?s Schedule of Expenditures of Federal Awards (SEFA) for fiscal year 2022. Criteria: As a recipient of federal awards, the School District is required to establish and maintain effective internal control over federal awards that provides reasonable assurance of managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards pursuant to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 200.303 ? Internal Controls. Provisions included in the Uniform Guidance, Section 200.313(d)(1) state, ?Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property.? In addition, the Uniform Guidance, Section 200.313(d)(2) states, ?A physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years.? Condition: The following deficiencies were noted when reviewing the ESSER program equipment listing and physically locating five equipment items: ? Property records did not include the following required components for all items tested: (1) A description of the property, (2) a serial number or other identification number, (3) the source of funding for the property (including the FAIN), (4) who holds title, (5) percentage of Federal participation in the project costs for the Federal award under which the property was acquired, (6) the location, and (7) use and condition of the property. ? Two pieces of equipment with costs totaling $19,387 could not be physically located based on information included in the property records, and these items reflected serial numbers that did not agree to accounting records. ? The appropriate safeguarding and maintenance of three pieces of equipment with costs totaling $105,674 could not be determined based on the information included within the property records. ? While a physical inventory was performed, the results were not effectively reconciled to the equipment listing. Cause: In discussing these deficiencies with management, they stated that there are multiple inventory lists maintained by various personnel; however, there was no consistency among the listings. Effect: The School District is not in compliance with the Uniform Guidance or GaDOE guidance related to the ESSER program. Failure to maintain a complete and accurate equipment listing and reconcile results of the physical inventory performed to the property records exposes the School District to unnecessary risk of error and misuse of equipment and/or federal funds. Recommendation: The School District should develop and maintain an equipment listing that reflects all required information, including a description, an identifying number, the source of funding, the title holder, the acquisition date, the cost, the percentage of federal participation in the project costs, the location, the use and condition, and any ultimate disposal data for each piece of equipment. In addition, management should implement controls to ensure that a complete physical inventory of equipment is performed, and the results are reconciled back to the equipment listing at least once every two years. Further, management should develop and implement a monitoring process to ensure that control procedures are being followed. Views of Responsible Officials: We concur with this finding.
FA 2022-002 Improve Controls over Equipment Compliance Requirement: Equipment and Real Property Management Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: Georgia Department of Education AL Numbers and Titles: COVID-19 ? 84.425D ? Elementary and Secondary School Emergency Relief Fund COVID-19 ? 84.425U ? American Rescue Plan Elementary and Secondary School Emergency Relief Fund COVID-19 ? 84.425W ? American Rescue Plan Elementary and Secondary School Emergency Relief Fund ? Homeless Children and Youth Federal Award Numbers: S425D210012 (Year: 2021), S425U210012 (Year: 2021), S425W210011 (Year: 2021) Questioned Costs: None Identified Description: The policies and procedures of the School District were insufficient to provide adequate internal controls over equipment and real property management as it relates to the Elementary and Secondary School Emergency Relief Fund program. Background: On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The CARES Act was designed to mitigate the economic effects of the COVID-19 pandemic in a variety of ways, including providing additional funding for local educational agencies (LEAs) navigating the impact of the COVID-19 outbreak. Provisions included in Title VIII of the CARES Act created the Education Stabilization Fund to provide financial resources to educational entities to prevent, prepare for, and respond to coronavirus. The CARES Act allocated $30.75 billion, the Coronavirus Response and Relief Supplemental Appropriations Act allocated an additional $81.9 billion, and the American Rescue Plan Act added $165.1 billion in funding to the Education Stabilization Fund. Multiple Education Stabilization Fund subprograms were created and allotted funding through the various COVID-19-related legislation. Of these programs, the Elementary and Secondary School Emergency Relief (ESSER) Fund was created to address the impact that COVID-19 has had, and continues to have, on elementary and secondary schools across the nation. ESSER funding was granted to the Georgia Department of Education (GaDOE) by the U.S. Department of Education (ED). GaDOE is responsible for distributing funds to LEAs and overseeing the expenditure of funds by LEAs. ESSER funds totaling $12,214,096 were expended and reported on the Tattnall County Board of Education?s Schedule of Expenditures of Federal Awards (SEFA) for fiscal year 2022. Criteria: As a recipient of federal awards, the School District is required to establish and maintain effective internal control over federal awards that provides reasonable assurance of managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards pursuant to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 200.303 ? Internal Controls. Provisions included in the Uniform Guidance, Section 200.313(d)(1) state, ?Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property.? In addition, the Uniform Guidance, Section 200.313(d)(2) states, ?A physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years.? Condition: The following deficiencies were noted when reviewing the ESSER program equipment listing and physically locating five equipment items: ? Property records did not include the following required components for all items tested: (1) A description of the property, (2) a serial number or other identification number, (3) the source of funding for the property (including the FAIN), (4) who holds title, (5) percentage of Federal participation in the project costs for the Federal award under which the property was acquired, (6) the location, and (7) use and condition of the property. ? Two pieces of equipment with costs totaling $19,387 could not be physically located based on information included in the property records, and these items reflected serial numbers that did not agree to accounting records. ? The appropriate safeguarding and maintenance of three pieces of equipment with costs totaling $105,674 could not be determined based on the information included within the property records. ? While a physical inventory was performed, the results were not effectively reconciled to the equipment listing. Cause: In discussing these deficiencies with management, they stated that there are multiple inventory lists maintained by various personnel; however, there was no consistency among the listings. Effect: The School District is not in compliance with the Uniform Guidance or GaDOE guidance related to the ESSER program. Failure to maintain a complete and accurate equipment listing and reconcile results of the physical inventory performed to the property records exposes the School District to unnecessary risk of error and misuse of equipment and/or federal funds. Recommendation: The School District should develop and maintain an equipment listing that reflects all required information, including a description, an identifying number, the source of funding, the title holder, the acquisition date, the cost, the percentage of federal participation in the project costs, the location, the use and condition, and any ultimate disposal data for each piece of equipment. In addition, management should implement controls to ensure that a complete physical inventory of equipment is performed, and the results are reconciled back to the equipment listing at least once every two years. Further, management should develop and implement a monitoring process to ensure that control procedures are being followed. Views of Responsible Officials: We concur with this finding. FA 2022-002 Improve Controls over Equipment Compliance Requirement: Equipment and Real Property Management Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: Georgia Department of Education AL Numbers and Titles: COVID-19 ? 84.425D ? Elementary and Secondary School Emergency Relief Fund COVID-19 ? 84.425U ? American Rescue Plan Elementary and Secondary School Emergency Relief Fund COVID-19 ? 84.425W ? American Rescue Plan Elementary and Secondary School Emergency Relief Fund ? Homeless Children and Youth Federal Award Numbers: S425D210012 (Year: 2021), S425U210012 (Year: 2021), S425W210011 (Year: 2021) Questioned Costs: None Identified Description: The policies and procedures of the School District were insufficient to provide adequate internal controls over equipment and real property management as it relates to the Elementary and Secondary School Emergency Relief Fund program. Background: On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The CARES Act was designed to mitigate the economic effects of the COVID-19 pandemic in a variety of ways, including providing additional funding for local educational agencies (LEAs) navigating the impact of the COVID-19 outbreak. Provisions included in Title VIII of the CARES Act created the Education Stabilization Fund to provide financial resources to educational entities to prevent, prepare for, and respond to coronavirus. The CARES Act allocated $30.75 billion, the Coronavirus Response and Relief Supplemental Appropriations Act allocated an additional $81.9 billion, and the American Rescue Plan Act added $165.1 billion in funding to the Education Stabilization Fund. Multiple Education Stabilization Fund subprograms were created and allotted funding through the various COVID-19-related legislation. Of these programs, the Elementary and Secondary School Emergency Relief (ESSER) Fund was created to address the impact that COVID-19 has had, and continues to have, on elementary and secondary schools across the nation. ESSER funding was granted to the Georgia Department of Education (GaDOE) by the U.S. Department of Education (ED). GaDOE is responsible for distributing funds to LEAs and overseeing the expenditure of funds by LEAs. ESSER funds totaling $12,214,096 were expended and reported on the Tattnall County Board of Education?s Schedule of Expenditures of Federal Awards (SEFA) for fiscal year 2022. Criteria: As a recipient of federal awards, the School District is required to establish and maintain effective internal control over federal awards that provides reasonable assurance of managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards pursuant to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 200.303 ? Internal Controls. Provisions included in the Uniform Guidance, Section 200.313(d)(1) state, ?Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property.? In addition, the Uniform Guidance, Section 200.313(d)(2) states, ?A physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years.? Condition: The following deficiencies were noted when reviewing the ESSER program equipment listing and physically locating five equipment items: ? Property records did not include the following required components for all items tested: (1) A description of the property, (2) a serial number or other identification number, (3) the source of funding for the property (including the FAIN), (4) who holds title, (5) percentage of Federal participation in the project costs for the Federal award under which the property was acquired, (6) the location, and (7) use and condition of the property. ? Two pieces of equipment with costs totaling $19,387 could not be physically located based on information included in the property records, and these items reflected serial numbers that did not agree to accounting records. ? The appropriate safeguarding and maintenance of three pieces of equipment with costs totaling $105,674 could not be determined based on the information included within the property records. ? While a physical inventory was performed, the results were not effectively reconciled to the equipment listing. Cause: In discussing these deficiencies with management, they stated that there are multiple inventory lists maintained by various personnel; however, there was no consistency among the listings. Effect: The School District is not in compliance with the Uniform Guidance or GaDOE guidance related to the ESSER program. Failure to maintain a complete and accurate equipment listing and reconcile results of the physical inventory performed to the property records exposes the School District to unnecessary risk of error and misuse of equipment and/or federal funds. Recommendation: The School District should develop and maintain an equipment listing that reflects all required information, including a description, an identifying number, the source of funding, the title holder, the acquisition date, the cost, the percentage of federal participation in the project costs, the location, the use and condition, and any ultimate disposal data for each piece of equipment. In addition, management should implement controls to ensure that a complete physical inventory of equipment is performed, and the results are reconciled back to the equipment listing at least once every two years. Further, management should develop and implement a monitoring process to ensure that control procedures are being followed. Views of Responsible Officials: We concur with this finding.
FA 2022-002 Improve Controls over Equipment Compliance Requirement: Equipment and Real Property Management Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: Georgia Department of Education AL Numbers and Titles: COVID-19 ? 84.425D ? Elementary and Secondary School Emergency Relief Fund COVID-19 ? 84.425U ? American Rescue Plan Elementary and Secondary School Emergency Relief Fund COVID-19 ? 84.425W ? American Rescue Plan Elementary and Secondary School Emergency Relief Fund ? Homeless Children and Youth Federal Award Numbers: S425D210012 (Year: 2021), S425U210012 (Year: 2021), S425W210011 (Year: 2021) Questioned Costs: None Identified Description: The policies and procedures of the School District were insufficient to provide adequate internal controls over equipment and real property management as it relates to the Elementary and Secondary School Emergency Relief Fund program. Background: On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The CARES Act was designed to mitigate the economic effects of the COVID-19 pandemic in a variety of ways, including providing additional funding for local educational agencies (LEAs) navigating the impact of the COVID-19 outbreak. Provisions included in Title VIII of the CARES Act created the Education Stabilization Fund to provide financial resources to educational entities to prevent, prepare for, and respond to coronavirus. The CARES Act allocated $30.75 billion, the Coronavirus Response and Relief Supplemental Appropriations Act allocated an additional $81.9 billion, and the American Rescue Plan Act added $165.1 billion in funding to the Education Stabilization Fund. Multiple Education Stabilization Fund subprograms were created and allotted funding through the various COVID-19-related legislation. Of these programs, the Elementary and Secondary School Emergency Relief (ESSER) Fund was created to address the impact that COVID-19 has had, and continues to have, on elementary and secondary schools across the nation. ESSER funding was granted to the Georgia Department of Education (GaDOE) by the U.S. Department of Education (ED). GaDOE is responsible for distributing funds to LEAs and overseeing the expenditure of funds by LEAs. ESSER funds totaling $12,214,096 were expended and reported on the Tattnall County Board of Education?s Schedule of Expenditures of Federal Awards (SEFA) for fiscal year 2022. Criteria: As a recipient of federal awards, the School District is required to establish and maintain effective internal control over federal awards that provides reasonable assurance of managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards pursuant to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 200.303 ? Internal Controls. Provisions included in the Uniform Guidance, Section 200.313(d)(1) state, ?Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property.? In addition, the Uniform Guidance, Section 200.313(d)(2) states, ?A physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years.? Condition: The following deficiencies were noted when reviewing the ESSER program equipment listing and physically locating five equipment items: ? Property records did not include the following required components for all items tested: (1) A description of the property, (2) a serial number or other identification number, (3) the source of funding for the property (including the FAIN), (4) who holds title, (5) percentage of Federal participation in the project costs for the Federal award under which the property was acquired, (6) the location, and (7) use and condition of the property. ? Two pieces of equipment with costs totaling $19,387 could not be physically located based on information included in the property records, and these items reflected serial numbers that did not agree to accounting records. ? The appropriate safeguarding and maintenance of three pieces of equipment with costs totaling $105,674 could not be determined based on the information included within the property records. ? While a physical inventory was performed, the results were not effectively reconciled to the equipment listing. Cause: In discussing these deficiencies with management, they stated that there are multiple inventory lists maintained by various personnel; however, there was no consistency among the listings. Effect: The School District is not in compliance with the Uniform Guidance or GaDOE guidance related to the ESSER program. Failure to maintain a complete and accurate equipment listing and reconcile results of the physical inventory performed to the property records exposes the School District to unnecessary risk of error and misuse of equipment and/or federal funds. Recommendation: The School District should develop and maintain an equipment listing that reflects all required information, including a description, an identifying number, the source of funding, the title holder, the acquisition date, the cost, the percentage of federal participation in the project costs, the location, the use and condition, and any ultimate disposal data for each piece of equipment. In addition, management should implement controls to ensure that a complete physical inventory of equipment is performed, and the results are reconciled back to the equipment listing at least once every two years. Further, management should develop and implement a monitoring process to ensure that control procedures are being followed. Views of Responsible Officials: We concur with this finding. FA 2022-002 Improve Controls over Equipment Compliance Requirement: Equipment and Real Property Management Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: Georgia Department of Education AL Numbers and Titles: COVID-19 ? 84.425D ? Elementary and Secondary School Emergency Relief Fund COVID-19 ? 84.425U ? American Rescue Plan Elementary and Secondary School Emergency Relief Fund COVID-19 ? 84.425W ? American Rescue Plan Elementary and Secondary School Emergency Relief Fund ? Homeless Children and Youth Federal Award Numbers: S425D210012 (Year: 2021), S425U210012 (Year: 2021), S425W210011 (Year: 2021) Questioned Costs: None Identified Description: The policies and procedures of the School District were insufficient to provide adequate internal controls over equipment and real property management as it relates to the Elementary and Secondary School Emergency Relief Fund program. Background: On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The CARES Act was designed to mitigate the economic effects of the COVID-19 pandemic in a variety of ways, including providing additional funding for local educational agencies (LEAs) navigating the impact of the COVID-19 outbreak. Provisions included in Title VIII of the CARES Act created the Education Stabilization Fund to provide financial resources to educational entities to prevent, prepare for, and respond to coronavirus. The CARES Act allocated $30.75 billion, the Coronavirus Response and Relief Supplemental Appropriations Act allocated an additional $81.9 billion, and the American Rescue Plan Act added $165.1 billion in funding to the Education Stabilization Fund. Multiple Education Stabilization Fund subprograms were created and allotted funding through the various COVID-19-related legislation. Of these programs, the Elementary and Secondary School Emergency Relief (ESSER) Fund was created to address the impact that COVID-19 has had, and continues to have, on elementary and secondary schools across the nation. ESSER funding was granted to the Georgia Department of Education (GaDOE) by the U.S. Department of Education (ED). GaDOE is responsible for distributing funds to LEAs and overseeing the expenditure of funds by LEAs. ESSER funds totaling $12,214,096 were expended and reported on the Tattnall County Board of Education?s Schedule of Expenditures of Federal Awards (SEFA) for fiscal year 2022. Criteria: As a recipient of federal awards, the School District is required to establish and maintain effective internal control over federal awards that provides reasonable assurance of managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards pursuant to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 200.303 ? Internal Controls. Provisions included in the Uniform Guidance, Section 200.313(d)(1) state, ?Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property.? In addition, the Uniform Guidance, Section 200.313(d)(2) states, ?A physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years.? Condition: The following deficiencies were noted when reviewing the ESSER program equipment listing and physically locating five equipment items: ? Property records did not include the following required components for all items tested: (1) A description of the property, (2) a serial number or other identification number, (3) the source of funding for the property (including the FAIN), (4) who holds title, (5) percentage of Federal participation in the project costs for the Federal award under which the property was acquired, (6) the location, and (7) use and condition of the property. ? Two pieces of equipment with costs totaling $19,387 could not be physically located based on information included in the property records, and these items reflected serial numbers that did not agree to accounting records. ? The appropriate safeguarding and maintenance of three pieces of equipment with costs totaling $105,674 could not be determined based on the information included within the property records. ? While a physical inventory was performed, the results were not effectively reconciled to the equipment listing. Cause: In discussing these deficiencies with management, they stated that there are multiple inventory lists maintained by various personnel; however, there was no consistency among the listings. Effect: The School District is not in compliance with the Uniform Guidance or GaDOE guidance related to the ESSER program. Failure to maintain a complete and accurate equipment listing and reconcile results of the physical inventory performed to the property records exposes the School District to unnecessary risk of error and misuse of equipment and/or federal funds. Recommendation: The School District should develop and maintain an equipment listing that reflects all required information, including a description, an identifying number, the source of funding, the title holder, the acquisition date, the cost, the percentage of federal participation in the project costs, the location, the use and condition, and any ultimate disposal data for each piece of equipment. In addition, management should implement controls to ensure that a complete physical inventory of equipment is performed, and the results are reconciled back to the equipment listing at least once every two years. Further, management should develop and implement a monitoring process to ensure that control procedures are being followed. Views of Responsible Officials: We concur with this finding.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Finding No. 2022-003 Research and Development Cluster: U.S. Department of Defense: Improved Ventilation of the Edematous Lung, Assistance Listing 93.838 (award number: 1R01HL113577-01A1) Statistically valid sample: No and it was not intended to be. Repeat finding: This is a repeat finding from the prior year single audit report (finding no. 2021-002). Compliance Requirement ? Equipment and Real Property ? Significant Deficiency and Noncompliance Criteria Per guidance included in 2 CFR part 200.313, non-Federal entities other than States must follow regulations which require that: Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. Further, the non-Federal entity must establish and maintain an effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and terms and conditions of the Federal award (2 CFR 200.303). Condition and Context Utilizing the listing of equipment additions provided by the Plant Fund manager, the Fixed Asset Specialist schedules a visit with the asset custodian to identify and tag the equipment. This process consists of affixing a barcode asset tag to the equipment. After tagging the equipment, the Fixed Asset Specialist will create an entry in Kuali. This entry will automatically generate a unique asset number in Kuali, for which, the Fixed Asset Specialist will then add all the required data related to that asset, including the tag number. We selected twenty-five pieces of equipment and noted for one selection, the asset?s tag was not included in the Kuali Asset Management System, therefore the property records were not accurate. Cause Management did not properly ensure that the tag number was included within fixed asset management system. Effect The University may not be able to properly identify equipment funded with federal awards to ensure proper inventorying, safeguarding, and maintenance. Questioned Costs There are no questioned costs associated with this finding as the equipment was within the University?s possession. Recommendation The University should strengthen its policies and procedures related to maintaining property records and tagging equipment. Views of Responsible Official Management agrees with the recommendation. The University will ensure that each individual fixed asset is appropriately tagged and that the information for the asset reconciles to the information reported in the Stevens Kuali Financial System. The Division of Finance has instituted an additional procedure to generate monthly asset tagging reports to address this issue and ensure that all assets are tagged in a timely manner. In addition, the Staff Accountant takes a picture of the asset tag for new assets which is attached to the supporting documentation in the Kuali Financial System. The Senior Accountant reviews the documentation for each asset and ensures that the appropriate asset tag is reflected in the Kuali Financial System. The Division of Finance engages an outside firm to conduct a complete physical inventory every two years. The Executive Director of Finance and Controller, the Senior Accountant and the Staff Accountant will ensure that all asset records are properly reflected in the Kuali Financial System.
FINDING 2022-007 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Number: 84.425U Federal Award Number and Year (or Other Identifying Number): S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Other Matters Condition and Context An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. The School Corporation had not designed, nor implemented a system of internal control over the addition of assets to the capital asset ledger. One employee was responsible for the preparation of the capital asset ledger, and the maintenance of the property records and required information, without a documented review or oversight process in place to detect and allow correction of errors. Three construction projects initiated in the audit period were paid with ESSER grant funds. These projects were all partially completed during the audit period and pay applications were paid on all three projects. However, two of the three projects were not included in Construction in Progress on the School Corporation's capital asset ledger. Additionally, the School Corporation did not have a control process in place to ensure that a physical inventory was performed at least biannually. The School Corporation's last physical asset inventory was taken in 2018. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. . . ." Cause Management had not developed, nor implemented a system of internal control that would have ensured compliance with the grant agreement and the Equipment and Real Property Management compliance requirement. Effect The failure to establish an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement could result in the loss of future federal funds to the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish a system of internal control related to the grant agreement and the Equipment and Real Property Management compliance. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.